Turkey Continues to Protect Employees from Effects of COVID-19: Part II

Ali Bulut
November 19, 2020

Incentive law numbered 7252 was published in the Official Gazette for private sector employers on 28 July 2020. Thanks to this law, private sector employers who applied for short work allowance (SWA) and cash wage support before July 2020 and whose short-time working ended will be able to benefit from financial support.

How to claim the incentive

It’s essential that private sector companies seeking to benefit from the new incentive law applied for SWA and cash wage support before 1 July 2020, and that their short-time working has ended. The employer shouldn’t benefit from other incentives and insurance premiums for the same insured employee in the same month while receiving this benefit. Employers who fulfill the requirement can benefit from this incentive at the employer and employee share percentage minimum wage level.

Private-sector employers can benefit from the incentive for a period of up to three months from the date of the expiry date of their short-time working period.

Employers need to be sure they meet the SWA and cash wage support criteria and don’t make any mistakes in their applications. If the Ministry of Family, Labour, and Social Security identify unjust incentives have been received or errors in the application, the employer will be penalised and the incentives will be withdrawn. Any liability for the delay and late fee for the benefited SWA and cash wage support are allocated together.

Through the new incentive law insurance discounts are provided through both the employer and employees. The employee cannot claim the insurance discount used for themselves, and the employer cannot reflect this discount to their employees.

Since the circular letter about the incentive was issued by the SSI in August, this method of claiming has been used. However, the principles and procedures of implementing the new incentive law have yet to be determined. Even though the deadline for benefiting from the incentive law is December 2020, this period can still be extended by the Presidential decree until June 2021 with quarterly periods.

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To understand more about the current SII incentive laws, download our SSI Incentive white paper and follow us on LinkedIn and Twitter to keep up-to-date with regulatory news and other updates.

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Ali Bulut

Ali is a Sales Director at Sovos Turkey. Based in Istanbul and originally from Turkey, Ali’s background is in software development and project management mostly related to salesforce applications. Ali graduated from the physics department in science faculty at Istanbul University. Ali has been working on tax regulations since 2013.
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